1 option
Asymmetric Consumption Smoothing / Brian Baugh, Itzhak Ben-David, Hoonsuk Park, Jonathan A. Parker.
- Format:
- Book
- Author/Creator:
- Baugh, Brian.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w25086.
- NBER working paper series no. w25086
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2018.
- Summary:
- Analyzing account-level data from an account aggregator, we find that households increase consumption when they receive (expected) tax refunds, as if they face liquidity constraints. However, these same households smooth consumption when making payments in other years, primarily by transferring funds among liquid accounts. Even households carrying credit card debt smooth consumption when making payments, and even highly-liquid households spend out of refunds. This behavior is inconsistent with pure liquidity constraints or hand-to-mouth behavior and most consistent with a mental accounting life-cycle model.
- Notes:
- Print version record
- September 2018.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.